Markets hoping for FTSE 100 all time high

In 1999, the stock markets partied like it was, well, 1999 as the FTSE 100 hit its all time high. It has been a rollercoaster ride since then but many predict that the markets will finally top that figure sometime in 2013, offering an indication that even the most cautious investors might be able to trust stocks and shares again.

Market growth

Back in those innocent days of 1999 when the FTSE 100 all time high 6950.6 was achieved on December 30, the economy looked very different.

That was at the height of the dotcom boom when money was flooding into every tech startup in Silicon Valley, with nobody bothering to ask those awkward questions about how all these websites were going to make money.

The bust soon followed, and the markets plummeted immediately after the September 11 2001 attack on the World Trade Center Twin Towers.

Since then, market growth has been tentative and troubled, with the steady growth after 2001 wiped out by the world wide global credit crisis of 2008.

The recovery in early 2013 saw the FTSE 100 approach the all time high figure before further economic troubles in Europe caused a corrective drop.

Analysts suggest the markets will grow steadily in the next two years, with current trends likely to take the FTSE 100 index over the 7000 mark.

What has been clear over the recent turmoil though is that the markets are easily spooked by adverse banking news or mere rumours. With the true resources of many European finacial institutions still unclear, markets could easily take a downward lurch.

Safety first

For cautious investors, an approaching FTSE 100 all time high rings alarm bells. Some analysts are suggesting that, with UK growth still unimpressive, shares prices are not an accurate relection of the current UK economy. A balanced portfolio remains the safest course to steer in markets which are still vulnerable to bad news from Europe.